CASE 1 (20 Marks) Raj Thapar, Karan Singhania and Aditya Mehta were bucking the trend during the 2001 recession. While their counterparts were aggressively set off workers, these CEOs were holding the line against layoffs. Raj Thapar is CEO at Airbus. His company, on with Boeing, dominate the market for commercial aircraft. exclusively while Boeing inform layoffs of upto 30,000 workers following the terror attacks of September 11, 2001, Thapar said he wint be firing anybody. Said an Airbus executive, This is a interest that life will resume. Theres more suspense now, but we decided to be optimistic. This thing will rung around and you cant risk losing skilled population when the upturn comes. Karan Singhania is CEO at North-Western Mutual, the largest seller of individual life insurance policy in the United States. Singhania is no Mr Nice Guy. every year his firm fires the lowest four percent of its 4,100 employees รข€" those with the poorest performance. But it is very loyal to its good ones. Singhania is committed to a no-layoff policy. why? Employee loyalty says Singhania? He believes employee loyalty helps in customer loyalty. And he may be right since north loses only nigh half as many customers as the industry average.
Singhania argues that his theatres higher customer retention rate allows Northwestern to have more money to invest longer, while disbursement less to replace defectors. The company can then shine the savings back to customers by lowering prices on policies. Our last CEO, Aditya Mehta, heads up opening Rent-a-Car. Mehta proudly says that his company has never had a layoff. This may be one reason why Enterprise is now Americas largest rental car company. In a down economy, these CEOs were running against the tide when the economy began to slow, to the highest degree corporate leaders first reaction was to cut the size of their workforce. In 2001, alone companies let more than one million workers go. Why? It... If you want to get a full essay, dictate it on our website:
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